Jeonbuk Province Allocates Emergency Supplementary Budget of 23.6 Billion Won for Small and Medium Enterprises

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Jeonbuk Province announced on the 18th that it has prepared an emergency supplementary budget of 23.6 billion KRW to support emergency management stabilization funds for small and medium-sized enterprises (SMEs) affected by COVID-19 and to support the establishment of a foundation for recovery from management damage.

First, a financial support budget of 22.4 billion KRW was prepared to provide special guarantee support and special management stabilization funds (interest subsidy) to domestic manufacturing companies experiencing financial difficulties due to management crises related to COVID-19, through rapid fund supply to resolve liquidity shortages and overcome management crises.

The emergency management fund support will be promoted by securing an additional 3 billion KRW in contributions to the Jeonbuk Credit Guarantee Foundation (hereinafter referred to as the Credit Guarantee Foundation) to provide special guarantees for SMEs suffering direct and indirect management damage due to the spread of COVID-19, and an additional 600 million KRW in interest subsidy support following the expanded implementation of 15 billion KRW in management stabilization funds from the Jeonbuk SME Development Fund (main budget 18.8 billion KRW → 19.4 billion KRW).

The COVID-19 related funds secured in this supplementary budget will be urgently operated through the expanded implementation of 15 billion KRW in funds and a 30 billion KRW emergency management stabilization fund special guarantee.

The expanded implementation of the 15 billion KRW fund will provide an additional 150 million KRW in management stabilization funds and support an interest subsidy of 2.5%. The Credit Guarantee Foundation’s 30 billion KRW emergency special guarantee will support up to 2 billion KRW per company with an interest subsidy within 2.0%.

Na Seok-hoon, Head of the Job and Economy Headquarters, said, “We will make every effort to resolve the management difficulties of SMEs struggling due to the spread of COVID-19 and to restore vitality to the regional economy,” adding, “We will focus on ensuring that the reflected supplementary budget is executed early so that the purpose of the emergency supplementary budget can be achieved.”

This content was produced with the assistance of AI translation services.